News:RBI has asked for stricter rules for E-commerce marketplaces acting as payment gateways and payment aggregators to other merchants. Facts: What are payment gateways? Payment gateways and payment aggregators refer to entities which provide technology infrastructure to route and facilitate the processing of an online payment transaction and perform other functions without actually handling the… Continue reading Reserve Bank wants stricter rules for e-commerce payments gateways
Tag: RBI
RBI panel to firm up mechanism for assessing adequacy of forex reserves
News:The Reserve Bank of India (RBI) has formed an internal group to assess whether foreign exchange reserves are adequate to cover various risks. Facts: According to Bimal Jalan Committee report, the RBI’s foreign exchange reserves in 2008 were higher than the country’s external debt.But this position has reversed in 2019. At present,India’s foreign exchange reserves… Continue reading RBI panel to firm up mechanism for assessing adequacy of forex reserves
External benchmark-based lending must: RBI
News:The Reserve Bank of India (RBI) has made it mandatory for banks to link all new floating rate personal or retail loans and floating rate loans to MSMEs to an external benchmark rate from October 1st,2019. Facts: The RBI has given the options to banks for external benchmark rates which are (a) RBI repo rate… Continue reading External benchmark-based lending must: RBI
Task force recommends online loan sale platform
The Reserve Bank of India(RBI) has set up a task force to submit a report on the development of a secondary market for corporate loans.It was headed by T.N. Manoharan. The task force has recommended setting up of a self-regulatory body of participants who would work on creating a platform for secondary sale of corporate… Continue reading Task force recommends online loan sale platform
Bank frauds rise 74%, says RBI
According to Reserve Bank of India’s annual report,the amount involved in bank frauds has increased by 74% over the last one year. Among the banks,the public sector banks(PSBs) have accounted for the bulk of frauds at around 90% of total fraud amount.It was followed by private sector banks and foreign banks. The report said that… Continue reading Bank frauds rise 74%, says RBI
Jalan panel proposes change in RBI accounting year, transparent accounts
The Reserve Bank of India(RBI) has accepted the Bimal Jalan panel recommendations.It was set up to review the RBI’s economic capital framework. The economic capital framework reflects the capital that an institution requires or needs to hold as a counter against unforeseen risks or events or losses in the future. The panel has recommended a… Continue reading Jalan panel proposes change in RBI accounting year, transparent accounts
Open Market Operations(OMO)
The Reserve Bank of India (RBI)’s surplus for 2018-19 was higher than the surplus in recent years.This was due to the large amount of open market operations(OMOs) conducted by the central bank during the year. Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank… Continue reading Open Market Operations(OMO)
Review capital framework every five years, says Jalan Committee
RBI had constituted a panel on economic capital framework to address the issue of RBI reserves.The panel was headed by Bimal Jalan. Economic capital framework refers to the risk capital required by the central bank as a counter against unforeseen risks or events or losses in the future. The committee has recommended a review of… Continue reading Review capital framework every five years, says Jalan Committee
RBI board approves Rs 1.76 lakh crore transfer to govt
The Reserve Bank of India(RBI) has decided to transfer a sum of 1.76 lakh crore rupees to the government.The surplus transfer was finalised in keeping with the recommendations of a committee headed by former RBI governor Bimal Jalan. RBI had constituted a panel on Economic capital framework(ECF) to address the issue of RBI reserves.The panel… Continue reading RBI board approves Rs 1.76 lakh crore transfer to govt
Explained: Reasons, implications of repo rate cut
The Reserve Bank of India’s(RBI) monetary policy committee (MPC) has lowered the repo rate by 35 basis points to 5.4%. Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI. The Monetary Policy Committee(MPC) is a committee of the Reserve Bank of India.The MPC is made up… Continue reading Explained: Reasons, implications of repo rate cut
